The state of travel in 2023: A survey of American generations

At Avail, we conduct an annual state of travel survey to better understand how American consumers approach trip planning, what their travel preferences are and whether their viewpoints and behaviors shift over time. This year’s survey was completed by U.S. adults spread across four generations: Gen Z, Millennials, Gen X and Baby boomers. We asked that they consider our questions through the prism of travel that will occur within the next 12 months, between August 2023 and August 2024. 

Last year’s survey included questions that aimed to understand sentiments around COVID-19. With much of the world eliminating pandemic restrictions and precautions, we felt that asking the same questions would not be fruitful. Our assumption proved true, as we uncovered that although COVID-19 does still affect the daily lives of many people, it is not stopping most Americans from domestic and international travel, nor is it a top concern when it comes to making travel plans, such as booking transportation and accommodations.

Here we present the key takeaways from the survey results, followed by our analysis of these results and the other insights we uncovered.

Key takeaways

• Consumer sentiment around the current state of the COVID-19 pandemic remains mixed. Despite this, nearly 90% of consumers have plans to embark on a trip or vacation within the next 12 months, with the majority claiming that their travel plans remain largely unaffected by COVID-19.
• Most consumers indicate plans to maintain or even increase their pre-pandemic travel levels over the next year, reflecting a higher degree of comfort with travel.
• Personal finances and travel expenses now take precedence over the pandemic as the primary concerns and barriers influencing travel decisions, such as booking transportation and accommodations. However, Gen Z respondents prioritize safety and security over cost when considering which accommodations to book.
• While affordability of the trip is the biggest factor shaping travel plans over the next 12 months, concern over weather conditions has gained prominence due to the increasing frequency and severity of catastrophic events. 
• Hotels are the primary accommodations consumers anticipate booking when planning their trips, followed by staying with family or friends. 
• Most consumers prefer to book accommodations within two months of their trip, with younger generations being slightly more comfortable booking closer to their travel dates. 
• Similar to accommodations, most consumers tend to book their vacation travel within two months of their intended departure date. 
• Personal vehicles, flights and rental cars continue to reign as the preferred modes of travel for many. Driving and walking are preferred over public transportation while at the destination. 

General sentiment about COVID-19 — over, ongoing or still a concern?

Although COVID-19 is no longer making news headlines in the same way it did two years ago, the thought of contracting or spreading the disease still affects many people’s decision-making. When asked how COVID-19 affects daily life, 22% of our survey respondents say it still has a significant impact, while at the other end of the spectrum, 20% say it has no impact. The remainder were nearly split on whether it minimally or moderately affects daily life.  

Opinions among Americans regarding the status of COVID-19 are still divided. Older consumers are more likely to view the pandemic as an ongoing or critical concern, while younger Americans consider it to be mostly or completely over. 

However, despite these differences of opinion, 59% of consumers are quite comfortable with the idea of traveling again, and 88% say they plan to travel within the next 12 months. Among those intending to travel this year, nearly everyone asserts that COVID-19 has had little to no impact on their vacation plans. And most consumers — 79% of Gen Z, 84% of Millennials, 76% of Gen X and 77% of Baby boomers — have plans to maintain or even increase their pre-pandemic travel levels over the next year, reflecting a higher degree of comfort with travel.

Travel plans and concerns for 2023 and into 2024

As travel rebounds post-pandemic, Americans are mostly looking to stay local, with 69% planning to vacation in the United States. Just 12% are eyeing an international trip and 19% are considering both domestic and international travel. 

Based on survey responses, the desire to book a domestic trip could be an attempt to keep costs lower. With inflation and other factors pushing up prices, every generation is concerned about travel expenses (54%). The second-biggest concern is personal health and safety (38%) — not to be conflated with worries of COVID-19 restrictions (21%) — followed by crowded destinations (29%) and travel disruptions (22%). But when it comes to these same factors actually influencing travel plans over the next year, just over a quarter of consumers say that health and safety measures will affect their decision-making. Instead, trip affordability (61%), weather conditions (36%), flexibility (26%) and health and safety measures (26%) are the most influential factors.

Two major consumer advantages coming out of the pandemic are greater flexibility for bookings and an increase in convenience options, like self-service capabilities. These two factors continue to influence trip planning for many American travelers. Among our survey respondents, 25% value convenience of transportation and 26% have a preference for flexibility of booking.

Accommodations and booking preferences

While a majority of Americans (59%) expect to stay in a hotel during their upcoming travels, there are some interesting contrasts among generations for other lodging choices. A statistically significant number of Gen Z and Millennials plan to stay in a bed and breakfast or vacation rental, such as an Airbnb, compared to Gen X and Baby boomers, who greatly favor hotels and family or friends over other options. Millennials show a greater preference to book a resort stay than any of the other generations.

Cost is the top factor influencing booking decisions for accommodations (35%), followed by safety and security (22%). Interestingly, Millennials, Gen X and Baby boomers ranked cost as their top priority, but Gen Z respondents ranked it below safety and security. Millennials, Gen X and Baby boomers all consider quality the third-most-important factor, while Gen Z ranks quality 5th, below accommodations offering a unique experience (4th) and positive reviews (3rd).  

When it comes to booking lead times, a minority of people in each generational group book accommodations more than six months prior to departure. The sweet spot for the majority of consumers is one to two months out, although many are still comfortable booking within a month of their trip. Gen Z is most comfortable waiting, with 35% firming up plans less than one month before departure, while Baby boomers are less comfortable with that time frame, seeing only 24% make bookings that close to their trip.

Travel transportation preferences 

With 69% of respondents planning to travel only domestically within the next year, it’s no surprise that a majority intend to reach their destination by driving, whether behind the wheel of their personal vehicle, a rental car or a car share. Younger consumers show greater interest in using car sharing, particularly if it provides them with potential cost savings. With expenses and trip affordability being top concerns, alternative methods of transportation are becoming more appealing to help reduce travel costs. 

How do people plan to get around once they have arrived at their destination? Consumers show divided preferences. Baby boomers and Gen X prefer their personal car by far, while Millennials and Gen Z could easily opt for a rental car instead. Overall, walking came in third, over options like taxis and public transportation. 

As we’ve already seen, consumers are especially price-sensitive right now. Overall, 40% of respondents rank cost as the top factor when making transportation decisions. However, when breaking out responses by generations, we can see that not everyone is equally price-sensitive. Thirty-two percent of Gen Z respondents rank safety as their top priority when booking transportation, followed by cost (27%) and comfort (15%). Millennials prioritize cost (41%), safety (20%) and comfort (11%). Gen X is similar, with cost (49%) and safety (12%) outranking other factors, but both comfort and convenience are tied for third at 10% each. Baby boomers, likewise, are cost-sensitive (50%) when making transportation decisions, and then there’s a big drop-off for all the other factors. Their number two is a tie between safety and convenience (10% each) and comfort and direct routes are tied for third at 9% each.

Similar to booking accommodations, most consumers tend to book their vacation transportation within two months of their intended departure date. About a third of respondents from Gen Z, Millennials and Gen X are comfortable locking in their transportation less than one month prior to departure, while only a quarter of Baby boomers would do the same.

Changes compared to 2022

Last year when we conducted our state of travel survey, COVID-19 was still impacting travel in a big way. As such, many of our questions focused on that topic. Of those that didn’t, there have been some interesting changes between last year’s responses and this year’s.

Making travel plans over the course of the pandemic was risky — both for one’s health and the fate of the actual trip. If a travel partner became sick or a new restriction was imposed, plans would be canceled. Last year, respondents across age groups were willing to be more spontaneous with their travel plans in light of these risks. A majority said they would book just a month or less in advance: 58% of both Gen Z and Millennials, 61% of Gen X and 64% of Baby boomers. This year, with cancellations being less of a concern, only 35% or fewer respondents in each age group say they’re willing to be that spontaneous.

Comparing respondents’ plans for travel over the next 12 months to their pre-pandemic travel habits, most indicate intentions to maintain or even increase their pre-pandemic travel levels over the next year: 79% of Gen Z, 84% of Millennials, 76% of Gen X and 77% of Baby boomers. These numbers indicate an increased level of comfort with travel compared to last year’s survey results: 71% of Gen Z, 71% of Millennials, 65% of Gen X and 69% of Baby boomers.

This year, like last year, car travel is most preferred over plane, train, bus and other transportation methods. In 2022, wearing a mask and the risk of contracting COVID-19 may have been big drivers of that preference. However, the same can’t be said about this year. With so many people saying they plan to travel domestically in 2023 and 2024, it would make sense that they would favor car travel, as it’s more convenient and quicker for shorter journeys. The U.S. is also an easy — and beautiful — country to drive around, and so it’s no surprise that travelers are opting for a great American road trip over waiting in airport security lines or taking an uncomfortable bus ride. 

SURVEY METHODOLOGY

All data found within this report is derived from a survey by Allstate conducted online via survey platform VisionSuite by InnovateMR from July 31-August 3, 2023. There were 1,908 consumers who participated in the survey for questions related to COVID-19, while 1,670 respondents participated in the travel-related survey. Sample sizes are representative of the U.S. adult population. This survey was conducted over a four-day span, and all respondents were asked to answer all questions as truthfully as possible and to the best of their knowledge and abilities.